The Central Bank of Turkey has raised the key interest rate to a record level

The Central Bank of Turkey has increased the key interest rate from 45% to 50%. This is the highest level since 2003.

According to the regulator's press service, the decision to raise the key interest rate was made against the backdrop of rising inflation, which turned out to be higher than expected. In February, the consumer price index rose by 67.07%, exceeding expectations of 66%. On a monthly basis, the consumer price index increased by 4.53 percent, with expected inflation at 3.8 percent.

Recall that at the end of February, the Monetary Policy Committee of the Central Bank of the Republic of Turkey (CBRT) left the key interest rate unchanged at 45%.

Prior to this, the regulator had raised the rate for eight months. In January, the Central Bank predictably raised the key interest rate by 2.5 percentage points, from 42.5% to 45%. This level of the key interest rate also became the highest since 2003.